Identify the term that indicates an excess of expenditure over income, in the case of the not-for-profit organization.

Deficit

An income and expenditure account of a non-profit organisation serves as a summary of financial activities throughout the accounting year, similar to a profit and loss statement prepared using accrual accounting principles in the context of businesses. It exclusively encompasses revenue-related items, with the final balance indicating either a surplus (where income exceeds expenditure) or a deficit (where expenditure surpasses income). This surplus, generated from the excess of income over expenditure, is not distributed among members; instead, it is directly added to the capital fund as displayed in the balance sheet.